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Investors watch as Fed Chair talks monetary policy with Congress this week: How the headlines can affect your money

The House Budget Committee advanced President Joe Biden's $1.9 trillion Covid relief package.

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Jerome Powell, chairman of the U.S. Federal Reserve, speaks during a House Select Subcommittee on the Coronavirus Crisis hearing on September 23, 2020 in Washington, DC.
Stefani Reynolds | Pool | Getty Images

Markets were mixed on Monday and the latest Covid relief proposal is making its way through the House. Here's how the headlines could affect your money.

Markets mixed on Monday 

Indexes were mixed Monday at the closing bell. The Dow rose just 0.1%, while the S&P 500 and Nasdaq fell 0.8% and 2.5%, respectively, as a result of losses in tech.   

Stocks pointed down Tuesday morning, as investors anticipate Federal Reserve Chairman Jerome Powell's two addresses to Congress about monetary policy later Tuesday and on Wednesday.

House set to pass Biden's stimulus

The House Budget Committee advanced President Joe Biden's $1.9 trillion Covid relief package, setting the stage for its passage by the House on Friday or Saturday. The bill will then advance to the Senate floor, where it is likely to face some objections. 

Among its most controversial provisions is one that would raise the minimum wage to $15 an hour by 2025, which some Republicans have argued would hurt businesses and result in a loss of jobs. Democrats may compromise by lowering the minimum wage to $11 or $12 per hour, or the provision may be edited out of the final bill.

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Avoid overspending when the economy opens

As millions of Americans continue to get vaccinated and public health experts like Dr. Anthony Fauci predict a return to normalcy by the end of 2021, many people are gearing up to spend on the things and experiences they couldn't during the pandemic.

That means "an overspending trigger is coming up," says Brad Klontz, a certified financial planner and financial psychology professor at Creighton University. Remember to keep putting money away in emergency savings, set a budget, and spend what you can afford.

Words you've heard: bond yield 

A bond yield is the interest accrued on a given bond as a percentage of its initial value. It's a way to measure how much investors have made on their investment. Bond yields on the five, 10, and 30-year bonds have recently risen.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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